XRP ETF and Its Impact on Ripple Coin Price

Bittime - The XRP crypto asset experienced a gain of around 2% in the Asian trading session last Friday, driven by the latest developments regarding the application for ETF-based investment products. 

Grayscale Plans XRP Spot ETF

Analysts predict a potential increase XRP price up to 27% following plans to convert the Grayscale XRP Trust into a spot ETF following an official filing with the SEC. In technical analysis, this token shows an interesting chart formation with a historical high target if it is able to penetrate the key level.

Plan ETF Trust Becomes Spot ETF by Grayscale

NYSE Arca officially filed document 19b-4 to change the structure of the Grayscale XRP Trust to an exchange-traded fund (ETF). This step is believed to open regulated investment access for institutions through registered stock exchanges. If approved, this product would be the first ETF to directly track the price of XRP on the spot market.

Bitwise, WisdomTree and 21Shares Could Follow Grayscale's Plan

Following this initiative, a number of asset management companies such as Bitwise, WisdomTree, and 21Shares are said to be submitting similar proposals in the near future. Eleanor Terrett, a FOX Business journalist, stated via the X platform that the wave of XRP ETF applications is predicted to increase next week. Previously, several applications were withdrawn due to unclear responses from the SEC during the previous leadership period.

Read too XRP ETF: List of 4 Investment Companies Proposing Exchange Traded Funds Ripple Coin

XRP Price Targets Amid Spot ETF News 

Technical analysts identified a bullish pennant pattern in XRP price movement, with a critical support level at $2.62 (around IDR 42,968). A break of the $3.55 (Rp. 58,220) resistance could trigger a rally towards the $4.10 (Rp. 67,240) zone, although it would require clearing the psychological barrier at the previous all-time high level. 

XRP Predictions | TradingView/@FXStreet

Futures liquidation data shows moderate activity totaling $1.78 million in the last 24 hours, reflecting a balance between long ($842k) and short ($941k) positions. 

The technical indicator RSI in the upper neutral zone confirms positive momentum, although the overbought signal on the Stochastic Oscillator hints at a short-term correction.

Read too How to Buy XRP (XRP)

Regulatory Implications and Market Outlook  

The approval of an XRP ETF by the SEC would not only end the long-standing legal dispute with Ripple, but also open the door to wider institutional adoption. This development is an important catalyst for this digital asset focused on cross-border transactions, although investors are advised to consider risk factors such as market volatility and regulatory dynamics.

Read too 14 Companies Collaborating With Ripple (XRP)

FAQ about XRP ETFs and their Impact onp Ripple Coin Price

1. What does it mean to convert the Grayscale XRP Trust to a spot ETF?

The conversion of the Grayscale This aims to provide regulated investment access for investors.

2. How could an XRP ETF application affect the price of XRP?

If the SEC approves the XRP ETF application, this could end the legal dispute between Ripple and the SEC, as well as increase institutional interest in XRP. As a result, the price of XRP could experience a significant spike, with a potential increase of up to 27% if it manages to break the key resistance level.

3. What should investors pay attention to before investing in XRP?

Investors are advised to conduct in-depth fundamental and technical analysis before investing in XRP. Pay attention to factors such as market volatility, regulatory developments, and price support and resistance levels to make wiser investment decisions.

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Reference

Michael Ebiekutan, XRP on the brink of 27% rally amid surge in crypto ETF filing activities, Accessed January 31, 2025

Author: IN